http://www.soundmoneymatters.com/libor-fed-rate/ How to Manage Money More Easily Wed, 17 Mar 2010 01:36:25 -0700 http://wordpress.org/?v=2.9.1 hourly 1 http://www.soundmoneymatters.com/libor-fed-rate/comment-page-1/#comment-81 Aryn Tue, 29 Jan 2008 17:51:13 +0000 http://www.soundmoneymatters.com/libor-fed-rate/#comment-81 You're right, Lily. Some mortgages are pegged to the 10-year Treasury, but home equity loans and HELOCs could be pegged to shorter-term treasuries. My research was conflicting on how the Fed rate cut would affect mortgages. You’re right, Lily. Some mortgages are pegged to the 10-year Treasury, but home equity loans and HELOCs could be pegged to shorter-term treasuries. My research was conflicting on how the Fed rate cut would affect mortgages.

]]> http://www.soundmoneymatters.com/libor-fed-rate/comment-page-1/#comment-78 Lily Mon, 28 Jan 2008 23:36:18 +0000 http://www.soundmoneymatters.com/libor-fed-rate/#comment-78 As I understand it, you're not entirely right about mortgages pegged to Treasury rates. The Fed cut short-term fed fund and discount rates. Mortgages are, for the most part, linked to 10-year Treasuries. Over time, the 10-year may fall as well as bond investors adjust to the new rate environment. But the Fed cut has no direct impact on mortgages tied to Treasury rates. (Mortgage rates started falling even before the rate cut.) As I understand it, you’re not entirely right about mortgages pegged to Treasury rates. The Fed cut short-term fed fund and discount rates. Mortgages are, for the most part, linked to 10-year Treasuries. Over time, the 10-year may fall as well as bond investors adjust to the new rate environment. But the Fed cut has no direct impact on mortgages tied to Treasury rates. (Mortgage rates started falling even before the rate cut.)

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